The Types of Car Insurance in New Zealand with NZ Compare
Feb 28, 2024

Why is car insurance important? What are the different types of car insurance in NZ? Read on to make an informed choice about your policy!

Unlike other countries, car insurance is not mandatory in New Zealand. However, it is a smart move for car owners to consider investing in car insurance to protect themselves in case of something unexpected happening. 

With thousands of cars on the road in our biggest cities and small towns alike, drivers in New Zealand are susceptible to accidents. These can be jarring and distressing situations that can be made that little bit easier by having insurance on hand. 

Protects Yourself from Paying a Claim Against You

In the case of the most basic tier of car insurance, you will be protected against any damage you may cause to another vehicle or property. If you crash into another car, or into someone’s living room, your insurance provider will cover the cost of repairs, protecting your wallet from having to be emptied or land in major debt. With all kinds of cars on the roads, from humble Toyotas to sleek Teslas, you don’t want to risk having to pay for repairs out of your own pocket! 

Protects your Car from Fire and Theft

Depending on the type of cover you purchase, your vehicle can beprotected from damage caused by fire and theft, meaning your insurance provider will help cover the cost of your vehicle in the case of these unexpected events. This also helps protect you financially in the case of suddenly losing your vehicle. 

Protects your Vehicle

If you have comprehensive cover, you can also protect your car in the case of damage. Your insurance provider will cover any damage done to your car, no matter how it’s occurred. If you are involved in an accident, your car insurance provider can cover the costs of repairs or replace your own vehicle, no matter who was at fault. For those wishing to save themselves the financial burden of having to cover the cost of replacing or repairing your vehicle. Protect your vehicle and your hard earned money by investing in an insurance policy that will keep you moving.

Consider Excess

As with each type of insurance, you can choose to pay less on your premium by having an excess that you’d need to pay. 

What is excess? Excess is the amount of money you will pay when making a claim on your insurance. So, if you get into an accident, and need to claim your insurance to repair your car, you will need to pay a certain amount of money – as what you agreed to when purchasing your insurance – to process the claim. The higher the excess, the lower your premiums – or regular insurance payments. 

How to get Cheaper Car Insurance

Types of Car Insurance

Third Party: The most basic type of car insurance that covers any damage or injury that you may cause to another person, vehicle or property behind the wheel. 

Third Party Fire and Theft:The next tier of car insurance that covers damage you cause to others, and protects your vehicle in the event of fire or theft. 

Comprehensive: The most extensive coverage that covers the cost of repair or replacement to your vehicle, as well as to the other party involved no matter who was at fault. 

Compare Car Insurance

Compare Car Insurance

There are plenty of car insurance providers on the market. But not all car insurance policies are made equally. It is important to compare car insurance policies available to you, as certain policies will vary depending on the type of coverage, your age, which driver’s licence you have, the vehicle, and how much you are willing or able to pay to insure the car. You can also chat to a finance expert at Money Compare to get free, bias-free advice about car insurance.

Money Compare makes it easy to compare different policies side-by-side so that you can make the most informed choice about your insurance purchase, and save money along the way. 

Compare Car Insurance

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